HomeMy WebLinkAbout07-04 • •.
Resolution No. 7-04
A RESOLUTION DECLARING INTENTION TO REIMBURSE
EXPENDITURES FROM THE PROCEEDS OF OBLIGATIONS
TO BE ISSUED OR CAUSED TO BE ISSUED BY THE TOWN
RESOLVED, by the City Council of the Town of Los Altos Hills (the"Town"):
WHEREAS, the Town proposes to undertake the project referenced below, to
issue or cause to be issued a financing lease or certificates of participation (in either case,
the "Obligations") for such project, and to use a portion of the proceeds of such
Obligations to reimburse expenditures made for the project prior to the issuance of the
Obligations; and
WHEREAS, United States Income Tax Regulations section 1.150-2 provides
generally that proceeds of tax-exempt obligations are not deemed to be expended when
such proceeds are used for reimbursement of expenditures made prior to the date of
issuance of such obligations unless certain procedures are followed, one of which is a
requirement that (with certain exceptions), prior to the payment of any such expenditure,
the issuer declares an intention to reimburse such expenditure; and
WHEREAS, it is in the public interest and for the public benefit that the Town
declares its official intent to reimburse the expenditures referenced herein.
NOW, THEREFORE,it is hereby DECLARED AND ORDERED, as follows:
1. The Town intends to issue the Obligations or cause the Obligations to be
issued for the purpose of paying the costs of acquiring and constructing capital
improvements consisting of a new Town Hall, to be located at 26379 Fremont Road in
the Town(the"Project").
2. The Town hereby declares that it reasonably expects (i) to pay all or a portion
of the costs of the Project prior to the date of issuance of the Obligations, and (ii) to use a
portion of the proceeds of the obligations for reimbursement of expenditures for the
Project that are paid before the date of issuance of the Obligations.
3. The principal amount of the Obligations is expected to be not in excess of
$3,750,000.
* * * * *
• I
PASSED AND ADOPTED this 5th day of February, 2004 by the following vote:
AYES: Mayor Emily Cheng, Mayor Pro Tern Mike O'Malley,
Councilmember Bob Fenwick, Councilmember Breene Kerr and
Councilmember Dean Warshawsky.
NOES: None
ABSENT: None
BY ..
eayor
Attest:
City • erk